Chevron is developing 2.7 gigawatts of natural gas power generation in West Texas to supply a Microsoft AI data center, according to the interview with Chevron New Energies President Jeff Gustavson. The project will use Permian Basin natural gas and combine seven GE Vernova 7HA turbines with 12 smaller Solar turbines, a Caterpillar business.
Key points from the interview:
- Dedicated power: The facility will initially operate off-grid, supplying the data center directly through a “behind-the-meter” arrangement intended to reduce competition for electricity with existing consumers.
- Permian advantage: Abundant natural gas and Chevron’s established regional operations make West Texas a suitable location for large-scale power generation.
- Community considerations: Chevron plans to minimize water consumption, use non-potable water sources, and address emissions, noise and infrastructure needs.
- Broader energy strategy: Chevron is also pursuing hydrogen production and underground storage through Utah’s ACES project, geothermal energy, carbon capture and lithium extraction from subsurface brines.
The development is called Project Kilby, a planned 2.67-gigawatt (2,670 MW) natural gas power facility in Reeves County, West Texas, dedicated to supplying a Microsoft data center. The rounded 2.7 GW figure represents planned full generation capacity, which will come online in stages. Chevron
Project detail What is known Developer Energy Forge One, currently described on the project website as a 50/50 joint venture between Chevron and Joulent. Customer Microsoft, under a 20-year power purchase agreement announced June 22, 2026. Power arrangement Generation located alongside the data center, supplying electricity directly through a behind-the-meter arrangement designed to reduce strain on the regional grid. Construction approach Phased development, allowing power generation to expand as equipment and systems are completed. First electricity Expected in 2028. Full capacity Anticipated in 2031.
These details come from Chevron’s announcement and the current project website.
Author: phinds